Boston Metal is making fossil fuel free steel. And some of the world’s largest venture capitalists are behind it.
What’s happening:
- Boston Metal, a startup focused on decarbonizing steel, has raised $236M in a Series C round to build their first of its kind facilities
- Notable investors in the round include the venture arm of Saudi Aramco, Breakthrough Energy Ventures, Microsoft’s Climate Innovation Fund and more
The big idea:
- The innovation process developed by Boston Metal is called ‘molten oxide electrolysis’ which leverages renewable energy to convert crude iron ore into molten iron
- The critical difference maker is this method of production avoids carbon dioxide emissions and does not generate any waste
- This is a stark contrast to traditional steel production which relies on coal and generates enormous amounts of emissions
Going deeper:
- Roughly two billion tons of steel are produced globally every year
- The carbon emissions from steel production alone contribute to approximately 10% of all carbon emissions globally
- Aside from steel production, Boston Metal has another innovative concept which is using their molten oxide electrolysis process to turn mining waste into an asset
- Their subsidiary in Brazil is able to extract valuable metals from complex, low concentration materials that are currently considered waste
- Metals recovery unlocks not only a potentially huge revenue stream for Boston Metal but could represent a paradigm shift for how mining companies handle their environmental responsibilities of dealing with waste
